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NEW DELHI: State oil firms have raised diesel prices by 51 paise per litre and petrol by Rs 1.8 per litre (with taxes in Delhi) from Saturday. Indian Oil Corp (IOC), country's biggest fuel retailer by volume, said in a statement that prices of diesel, before including local taxes, have been raised by 45 paise across the country while petrol is costlier by Rs 1.5 a litre. Local taxes vary between 12.5% and 20%.

"We have raised diesel prices in the range specified by the cabinet in January where the government will give subsidy on our revenue losses . But we are forced to raise petrol prices sharply because we need to recover past revenue loss of about Rs 1,100 crore by March 31 because the government does not provide any compensation on petrol," a senior executive working in Mumbai-based oil company said requesting anonymity. Oil marketing firms were losing about Rs 1.15 a litre revenue on petrol and over Rs 10.7 a litre on diesel.

IOC said in a statement that petrol prices were raised because of rising international crude oil rates. India, which imports more than 80% crude oil it processes, pays its import bil in dollars.

Brent, the international benchmark crude oil prices soared to nine months high last week, touching $119 per barrel. "The Corporation (IOC) has been compelled to pass on the increase in MS (petrol) prices to consumers as the Corporation has already suffered losses on sale of MS so far and trends in international oil market as well as INR-USD exchange rate indicate continued strength," IOC said in the statement.

IOC executives hinted at another round of petrol price hike by March, if internatonal crude oil prices continue to surge and rupee depreciates futher. "In fact, currently MS prices are hovering around $132.80/bbl. The trends of international oil prices and INR-USD exchange rate shall be closely monitored and the same shall be reflected in future price changes," IOC said. Oil companies last increased diesel rates by similar amount on January 18.

"With current upward revision of diesel prices by Rs 0.45/litre, our revenue loss n the fuel is Rs 10.27/litre," an IOC official said.